SCM Presentation- crm

8/7/2019 SCM Presentation- crm

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Supply Chain ManagementCourse Code: MBA723

Batch : D ( Team # 1)Arun V .G (07MBI015 )

Betsy B.K (07MBI022 )Siva Prasad (10MBA0105)

Satya Prakash (10MBA0045)

Sandeep (10MBA0155)Gurujeevan (10MBA0067)Aquil Ahmed (10MBA0174)G.Elangovan ( 10MBA0176)


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CUSTOMER

RELATIONSHIPMANAGEMENT


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What is CRM?y Customer relationship management (CRM) is a widely-implemented

strategy for managing a companys interactions with customers, clients andsales prospects. It involves using technology to organize, automate, and

synchronize business processesprincipally sales activities, but also those formarketing, customer service, and technical support.

y Customer relationship management describes a company-wide businessstrategy including customer-interface departments as well as otherdepartments. It is a process or methodology used to learn more aboutcustomers' needs and behaviours in order to develop stronger relationships

with them.y There are many technological components to CRM, but thinking about CRM in

primarily technological terms is a mistake. The more useful way to think aboutCRM is as a process that will help bring together lots of pieces of informationabout customers, sales, marketing effectiveness, responsiveness and markettrends.


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The three phases in which CRM support the

relationship between a business and itscustomers are to:

y Acquire: CRM can help a business acquire new customers

through contact management, selling, and fulfilment.y Enhance: web-enabled CRM combined with customer

service tools offers customers service from a team of salesand service specialists, which offers customers the

convenience of one-stop shopping.y Retain: CRM software and databases enable a business to

identify and reward its loyal customers and further developits targeted marketing and relationship marketinginitiatives.


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CRM- Goals:The overall goals are,

y to find, attract, and win new clients.

y to nurture and retain those the company alreadyhas, entice former clients back into the fold.

y to reduce the costs of marketing and clientservice.


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Key Function areas of CRM:

y Marketing Automation: It helps target bestcustomers, manage marketing campaigns and generate qualityleads. CRM systems for marketing help the enterprise identify

and target potential clients and generate leads for the sales

team.A key marketing capability is tracking and measuringmultichannel campaigns, including email, search, social media,

telephone and direct mail. Metrics monitored include clicks,responses, leads, deals, and revenue. This has been superseded

by marketing automation and Prospect RelationshipManagement (PRM) solutions which track customer behaviour

and nurture them from first contact to sale, often cutting out theactive sales process altogether.


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Key Function areas of CRM Cont...y CRM Tools: There are various CRM tools like Data-

cleansing tools, Data analysis or business intelligence

tools,C

ontent-management applications,C

ampaignmanagement system. All these tools are designed to dofixed functions.

y Call Centre Automation: When customers call a

company to get assistance with a companys product,representatives can query a knowledge managementdatabase containing information about the product.


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Key Function areas of CRM Cont...y Sales Force Automation:Companies can use SFA software to

forecast customers need, based on the customers history andtransactions, and to alert sales reps accordingly. Sales forceautomation (SFA) involves using software to streamline all

phases of the sales process,minimizing the time that sales representatives need to spend on

each phase. This allows sales representatives to pursue moreclients in a shorter amount of time than would otherwise be

possible.

At the heart of SFA is a contact management system for trackingand recording every stage in the sales process for eachprospective client, from initial contact to final disposition.

Many SFA applications also include insights into opportunities,territories, sales forecasts and workflow automation, quote

generation, and product knowledge.


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Advantages of using CRM:y Quality and efficiency in dealing with customers and

taking decisions

y Decreased costs of operations .

y Decision support for managers and other decisionmakers

y Enterprise agility

y Helping an enterprise to enable its marketing

departments to identify and target their bestcustomers, manage marketing campaigns and generatequality leads for the sales team.


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Advantages of using CRM Cont...y Assisting the organization to improve telesales,

account, and sales management by optimizing

information shared by multiple employees, andstreamlining existing processes (for example, takingorders using mobile devices)

y The formation of individualized relationships with

customers.


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Advantages of using CRM Cont...y Providing employees with the information and

processes necessary to know their customers,understand and identify customer needs andeffectively build relationships between the company,its customer base, and distribution partners.

y CRM covers methods and technologies used bycompanies to manage their relationships with clients.

y Its much less expensive to retain an existing customerthan to acquire a new one. CRM lets you keep closer toyour current customers so you can keep them ascustomers.


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y Enhanced customer satisfaction and retention,ensuring good reputation in the marketplacecontinues to grow.

y increased value from existing customers and reducedcost associated with supporting and servicing them,increasing your overall efficiency and reducing totalcost of sales

yImproved profitability by focusing on the mostprofitable customers and dealing with the unprofitablein more cost effective ways.


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4 Steps to Prevent CRM Failure :

y 1. Adopt a customer-centric strategy :This is the most important factor by far. "Companies

lacking customer-focused strategies including many (thatare) encouraged byCRM consultants and software vendors

to proceed regardless rarely succeed.Todays customers behave very differently from customers ofjust a few years ago. They realize they have a choice andthey can demand more from sellers. A lot of companies

approach CRM as a way to mollify these customers ratherthan truly reorienting the company to customer needs.

This leads to a tacked-on approach to CRMbecause it isonly viewed as a way of providing lip service


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4 Steps to Prevent CRM Failure

Cont.. : y 2. Engage line staff :You cant force line staff, such as sales people and service

agents, to use CRM tools. Companies that properly educaterelevant staff members about the business benefits ofCRMand train them to use it properly are more likely to achieve

success.Figure out how the CRM system will make life easier for line

staff so they can see how they will derive direct benefitsfrom the tools. The best way to do this to interview themduring the projects design phase to find out, for example,

if the system can eliminate some of the work associatedwith forecasting or generating proposals.


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eps o reven a ure

Continue...

y 3. Be willing to change the organization:Companies must also be willing to change theirorganizations to take proper advantage ofCRM.

example, organizations that traditionally place allpricing authority in a central organization may not

realize all the benefits ofCRM technology unless theyare willing to let sales people directly negotiate pricing

with customers, and thereby close sales more quickly.Unwillingness to change organizational roles is morelikely to contribute to a failed implementation than

accepting the status quo


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eps o reven a ure

Continue...y 4. Set measurable goals :Its difficult to monitor progress of a CRM project and its actual

payback without first establishing metrics and evaluating performance.To establish metrics, most companies need to make a substantial

investment in customer research.This research helps companies learn things such as how many customers

defect as a result of late deliveries or how satisfied customers are with aresponse to a service request.Furthermore, CRM is not a good fit with short-term financial goals and a

quick grab for ROI. Most of the financial benefit ofCRM comes fromprojects that keep customers from leaving and encourage them to

increase the amount they spend with the company.These benefits usually dont accrue for at least a year or two. Companies

that dont see long-term advantages to CRM should probably avoid italtogether rather than looking for a quick fix.


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Tha k Y

SCM Presentation- crm

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